Jonathan Kinsky, BTIG, has a new note on the small caps today. So, we wanted to bring him in to talk to you about it. It's nice to have you, especially given this move we've seen in the last few days at least.Um, we getting confirmation of a of a bigger breakout. >> Hey, Scott. So, I mean, yeah, there's a couple of points here.one um you know we had this the Russell 2000 breakout in September two new all-time highs but the S&P 600 which is a small cap index that has a profitability component um really conti ...

But our next guest says, "Be careful what you wish for." Let's bring in Rich Bernstein. He's the CEO and chief investment officer at Richard Bernstein Adviserss. What do you mean by that, Rich.Welcome. >> Well, Kelly, good to see you. Welcome back.I think um look, I think people have forgotten why the Fed cuts rates to begin with and how the Fed is the central bank. And you know, when they cut rates, they do so to lower the cost of funding to the banking system because the banking system isn't lending. And ...

Joining me now to discuss Ashley McNeel, Vista Equity Partners, head of equity capital markets. Welcome back. >> Thank you.>> It's such a good time to have you because there are so many different opinions about this whole AI bubble or not. Um you say that you remain quote responsibly bullish on the market. So what does that mean.Respon like friends don't let friends buy AI stocks at these levels. Like what is that. >> Yeah.No, it means being measured about your approach recognizing that yeah, we're probably ...

Core Viewpoint - The options market is experiencing increased bullish activity, particularly following the recent Federal Reserve meeting, with a notable rise in single stock options trading, especially in AI-related stocks and small caps [2][4]. Options Market Activity - A record 54 million single stock options contracts were traded, predominantly from the call side, indicating a strong bullish sentiment [2]. - The percentage of large-cap names trading with inverted call skew rose from 3% to 12% in just one week, suggesting heightened demand for upside calls [4]. - There is a decline in hedging demand, as evidenced by the cost of puts, indicating that investors are more focused on seeking upside potential rather than protecting positions [6]. Sector Rotation and Market Sentiment - A significant sector rotation was observed, moving away from defensive sectors towards cyclical sectors, reflecting a risk-on sentiment in the market [7]. - The options market indicates bullishness in equities, while the bond market is pricing in higher inflation, suggesting a complex market environment [7]. Economic Outlook - There is skepticism about whether the markets are signaling a growth environment, as both the bond and stock markets may be misinterpreting the Federal Reserve's focus, potentially leading to vulnerabilities in the weeks ahead [8]. - The underlying economic conditions, including inflation and labor market data, are critical factors to monitor, as they could impact market stability [8].

Let's do some final trades here on a pretty big day for stocks. Josh Brown, I mentioned rocket on Tuesday as my final trade. The stock has officially broken out.New 52- week high. Staying long. It looks great.Jimmy did this just just to put his thumb in my eye. That has nothing to do with you. The stock market's getting it wrong on Delta Airlines.Sirat agrees with me. You know, there's always a I feel like there's mot extra motivation to this. Do you What do you think, Sat.Listen, I think it's the best run ...